PVR-Cinemax merger gets board approval

Multiplex chain operator PVR Ltd todayu said its board has approved the merger of Cinemax India and a wholly-owned subsidiary with the company.

The board of directors of the company at its meeting held on June 7, 2013 approved in-principle the proposed amalgamation of Cinemax India Ltd, a Mumbai-based listed firm and Cine Hospitality Private Ltd, a wholly-owned subsidiary of the company, PVR said in a filing to BSE.

In a separate filing, Cinemax also said its board today approved "in-principle" the amalgamation of the company with PVR Ltd, the ultimate holding company.

The two companies said Haribhakti & Co and SSPA & Co, have been appointed as Joint Valuers for valuation of PVR Ltd and Cinemax India Ltd for determining the swap ratio for the proposed amalgamation.

In January this year PVR had announced to acquire 69.27% stake from the promoter group of Cinemax in an all cash consideration of Rs 395 crore through its subsidiary Cine Hospitality.

Shares of PVR today closed at Rs 324.90, down 3.06% from the previous close on the BSE.

However, Cinemax India shares closed at Rs 113.95, up 3.03% from the previous close.